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Quantity control reforms and the green transition

Author

Listed:
  • Takumi Haibara

    (Aichi University)

Abstract

The present paper offers an unconventional reform strategy that can mitigate the trade-off between the green transition and economic shocks. There are cases in which double tax cuts encourage a shift toward clean production without jeopardizing employment and/or overall taxed production. While the results depend on factor intensities, it can be argued that preserving output is more desirable than preserving employment, especially when implementing double tax cuts. The findings of this paper are particularly relevant for small open economies, where the scope for taxing dirty production is severely limited.

Suggested Citation

  • Takumi Haibara, 2025. "Quantity control reforms and the green transition," Economics Bulletin, AccessEcon, vol. 45(4), pages 1963-1971.
    • Handle: RePEc:ebl:ecbull:eb-25-00095
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • F1 - International Economics - - Trade

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